Compute the operating cycle

Assignment Help Financial Management

Reference no: EM131892627

1. Your firm has debt worth $250,000, with a cost of debt of 9 percent. It faces a 40 percent tax rate. If an indentical unlevered firm has a total value of 500,000, under Miller and Modigliani model with corporate taxes (MM 2), what is the value of your levered firm? (The relationship between the value of a levered and unlevered firm is given under Miller Modigliani's Capital Structure Model with Taxes.)

a. $250,000

b. $750,000

c. $680,000

d. $500,000

e. $600,000

2. Compute the Operating Cycle based on the following information:

ABC Products provides the following information.

Average Collection Period 45 days

Accounts Payable Period 45 days

Average age of inventory 60 days

Compute operating cycle

Reference no: EM131892627

Questions Cloud

What is the optimal order quantity for the manufacturer : The setup cost is $20 per order and the inventory holding cost is 10% of the unit cost. What is the optimal order quantity for the manufacturer?

Poor reputation within organisations : Ulrich (1998) argues that despite HR's generally poor reputation within organisations, given the competitive forces which exist in the current day

Prepare a division-classification essay on traffic accidents : In 250- 300 words, prepare a division-classification essay on traffic accidents. Find three well-balanced parts using the same rule or principle of division.

Indicate the direction of electron flow : Magnetic Fields - Using the diagrams below, indicate the direction of electron flow if the associated magnetic field is in the direction indicated

Compute the operating cycle : Compute the Operating Cycle based on the following information:

Pages of employees or job applicants : In today's changing work environment, do you believe that it is ethical for organizational managers to try to get access to and scrutinize the Facebook pages

Discuss about cross-sex friendships : Were your results surprising? Not surprising?What might this tell you about your actions in your cross-sex friendship(s)?

Organizational structure over the next few years : How do you think these changing attitudes might affect the manager's job and the organizational structure over the next few years?

Organization mission and vision statement : What is the role of the organization's mission and vision statement? How often should organization's review their mission and vision statement?

User Account

All Pages